Recession risk forces Bank of Japan to row back on inflation goal

The widening economic fallout from the coronavirus outbreak and soft consumption are forcing the Bank of Japan to message more strongly that it is no longer inclined to chase its elusive 2% inflation target, sources familiar with its thinking say.

After years of trying to vanquish deflation by setting an ambitious price goal, Japan's waning recovery prospects and a dwindling policy tool-kit have made the BOJ more open to conceding that the best it can do is to keep the economy afloat, the sources said.

The need to protect the world's third-largest economy from a sharp downturn has became a more urgent task for the BOJ, particularly as external risks such the Sino-U.S. trade war and a coronavirus outbreak in China weaken its ability to create a virtuous growth cycle. Reuters

No headway in India-U.S. trade talks

With no significant movement on the India-U.S. trade negotiations yet, officials are considering taking even a modest trade deal off the table when U.S. President Donald Trump visits India on February 24-25, sources privy to the talks said.

As The Hindu had reported on Friday, U.S. Trade Representative Robert Lightizer was due to visit New Delhi last week, but put off the visit when it appeared there was not enough progress in the talks, that appear to have run into trouble over market access for agricultural products including dairy, liberalising e-commerce, and investment norms for retail, as well as India’s push for a full reinstatement of its GSP (Generalised System of Preferences) status that the U.S. revoked last June.

Mr. Lightizer and Commerce Minister Piyush Goyal have not spoken since last Thursday, it is learnt, and after another unsuccessful attempt to reschedule Mr. Lightizer’s visit over the weekend, officials are beginning to feel that time may be running out to wrap up negotiations in time for the presidential visit.

DHFL stock zooms to hit upper circuit as over two dozen entities interested in takeover

Shares of Dewan Housing Finance Corporation Ltd on Tuesday shot up 5 per cent to hit upper price band after more than two dozen entities put in bids to takeover the debt-laden firm.

The stock zoomed 4.97 per cent to Rs 10.34 apiece on the BSE.

On the NSE, the stock rose 4.59 per cent to Rs 10.25 a unit.

Its shares hit the upper price band on both the stock exchanges.

Adani Group, KKR, Bain Capital, Kotak Mahindra Bank and Piramal Enterprises are among the more than two dozen entities that have put in bids for crippled DHFL, the first financial services player undergoing insolvency process, according to two sources. PTI

China to grant tariff exemptions on additional US goods

China said on Tuesday it would accept applications for new tariff exemptions for 696 products imported from the United States including key agricultural and energy products such as pork, beef, soybeans, liquefied natural gas and crude oil.

The exemptions, the third and the most substantial set to be granted to date by China since the start of the trade dispute with the United States, come a month after the signing of a Phase 1 trade deal between Washington and Beijing. China has committed to boosting its purchases of goods and services from the United States by $200 billion over two years. Reuters

Apple warns coronavirus will cut iPhone production, sales

Apple Inc. is warning investors that it won’t meet its second-quarter financial guidance because the viral outbreak in China has cut production of iPhones.

The California-based company said Monday that all of its iPhone manufacturing facilities are outside Hubei province, the epicentre of the outbreak, and all have been reopened. But the company said production is ramping up slowly.

The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues, Apple said in a statement.

Rupee slips 10 paise to 71.42 against US Dollar in opening deals

The Indian rupee declined by 10 paise to 71.42 against the U.S. Dollar in opening trade on Tuesday as investor sentiments remain fragile amid coronavirus fears.

Besides, foreign fund outflows, stronger dollar against key global currencies and subdued equity market too put pressure on the domestic unit.

The rupee opened weak at 71.42 at the interbank forex market and then fell further to 71.42, down 10 paise over its last close.

The rupee had settled at 71.32 against the U.S. Dollar on Monday.

India aims to be self-sufficient in coal production by 2024: Joshi

Union minister Pralhad Joshi has said the Centre aims self-sufficiency in the coal sector by 2024 and the changes in the coal mining policy have been effected to achieve the same.

Joshi -- Union Minister for Parliamentary Affairs, Mines and Coal -- was speaking at a two-day brainstorming session in Narmada district, about 100 km from Vadodara. Senior officials of the coal ministry, chairmen and managing directors of public sector undertakings are attending the event.

Joshi said India stood fifth in terms of coal reserves and the Centre was working towards achieving self-sufficiency in coal production. PTI

After SC’s rap, telcos pay Rs. 14,697 crore to DoT

Telecom services providers, including Bharti Airtel, Vodafone Idea and Tata Group, on Monday cumulatively deposited Rs. 14,697 crore in part payment of their adjusted gross revenue dues with the Department of Telecommunications (DoT). While Bharti Airtel paid Rs. 10,000 crore, Vodafone Idea remitted Rs. 2,500 crore and the Tata Group deposited Rs. 2,197 crore.

Additionally, Vodafone Idea committed itself to paying another Rs. 1,000 crore by the end of this week.

This follows last week’s Supreme Court order that asked the managing directors and directors of the companies to show cause why contempt proceedings should not be initiated against them for failing to pay even a “single penny” to the government despite an October 2019 judgment.

RIL to consolidate media, distribution businesses

Reliance Industries Ltd. (RIL) plans to consolidate its media and distribution businesses spread across multiple entities into Network18, in a move that will make Network18 an integrated media and distribution company with a revenue of Rs. 8,000 crore.

“Under the Scheme of Arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments,” the company said in a statement, adding that the appointed date for the merger shall be February 1, 2020.

The board of directors of the respective companies approved the Scheme of Amalgamation and Arrangement at their meetings held on Monday.

Nifty, Sensex trade lower amidst overall weak trend

Ashish Rukhaiyar reports:

Indian equities traded lower in the morning session amidst an overall weak trend in the global markets after Apple Inc said that its quarterly sales could miss forecasts.

The 30-share Sensex, which traded marginally weak in the pre-open session, fell over 180 points within minutes of opening on Tuesday.

At 9:20, the index was trading at 40,875, down 181 points. The broader Nifty fell below the psychological 12,000- mark to trade at 11,991.55, down 54.25 points.

On BSE, nearly 700 stocks were in the red, as against less than 400 gainers. Among the Sensex pack, 26 stocks lost ground in the early trade with IT, M&M, IndusInd Bank, Tata Steel and Hero Motocorp all shedding over 1% each.

Elsewhere in Asia, Hang Seng and Nikkei were both trading lower by more than 1% each.

Care downgrades rating on Vodafone Idea’s long term bank facilities, non-convertible debentures

Vodafone Idea on Monday said Care Ratings has downgraded rating on its long term bank facilities and non-convertible debentures.

The downgrade is on account of “significant erosion” in the overall risk profile of the company in the wake of absence of relief on modification plea relating to AGR dues on February 14.

It also takes cognizance of recent losses suffered by the company in the quarter ended December.

In a regulatory filing, Vodafone Idea said that Care Ratings Limited (CARE) has downgraded its rating on long term bank facilities and non-convertible debentures. The rating on long term bank facilities and non-convertible debentures has been revised to ‘BB-’ from ‘BBB-’ PTI

India's poultry sales decline after coronavirus rumours linked to chickens

India's poultry industry has lost 13 billion rupees ($182 million) in three weeks after speculation on social media that chickens are a cause of the spread of coronavirus, denting demand for chicken and nearly halving prices, say industry officials.

Millions of small poultry farmers have been hit by a sudden drop in sales. Soybean and corn producers are also being affected with prices of both the commodities used in animal feed have falling up to 8% in the last three weeks.

While the disease has infected more than 70,000 people in China and killed at least 1,770 there, only three confirmed cases have been reported in India. However, rumours that coronavirus can be transmitted through chickens have appeared on the WhatsApp message platform in India prompting the authorities to issue a statement last week that eating chicken is safe. Reuters